Switzerland's incumbent telco Swisscom has been refused the right to take over Telecom Lichtenstein following a decision by the Lichtenstein parliament.
Swisscom announced plans to take a 75 percent stake in Telecom Lichtenstein in late 2012, saying it would integrate the company into its existing Swiss business, and signed a declaration of intent with the principality.
However, the Lichtenstein parliament rejected the deal on Thursday.
According to Vaterland, Lichtenstein's largest daily paper, the CHF 23m deal was not approved because it was felt Swisscom wouldn't invest sufficiently in fibre broadband in the country.
"We regret the political decision by the Liechtenstein parliament but accept it. We would have appreciated to become a telecom operator for Liechtenstein with a long term focus. Swisscom will however remain a mobile operator in Liechtenstein," a spokesman for Swisscom said.